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Start a HORECA Company in Turkey
Turkey is becoming the new hub of the world due to its rich history and amazing culture. Many tourists from around the world are visiting the country to explore Turkey’s amazing architectural sites, and hence, you can easily see the HORECA sector thrive in the country. Therefore, it’s a very good idea and profitable to open a HORECA Company in Turkey and invest in the country.
What is HORECA? HORECA (also HoReCa, Horeka) is an acronym for the foodservice industry. The term is a syllabic abbreviation of the words Hotel/Restaurant/Cafe. The meaning of the term; “HORECA” is the Hotel, Restaurant, and Café services. Which is basically the hospitality industry. The hospitality industry includes accommodation, food and beverage service, event organizing, recreation, leisure, applied nutrition, theme parks, travel, and tourism. Hotels, travel organizations, restaurants, and pubs are all included.
Also, Turkish law favors such businesses and sectors that can boost their economy while also attracting more tourists due to amazing services. The scrumptious Turkish cuisine will also help your cause to thrive your HORECA Company in Turkey. Now, if you have decided that you want to get on board and open a HORECA Company in Turkey, but don’t know what things you need to consider before jumping on the ship, keep reading the article.
Here is an article that might interest you for further reading; “Investing in Turkey: A Golden Opportunity for Foreign Investors.”
What to Consider While Opening HORECA Company in Turkey?
There are a few things to consider before you decide to establish a HORECA Company in Turkey. The most important thing to consider is to apply for the necessary licenses and permits that can help your business to set up without any delay. You need to keep in mind that getting these certificates can take up to a few months to be issued.
One of the essential permits called “The premises registration certificate” can take up to three months before it’s issued to you. The second most important certificate called “The operation permit” can be issued within five days from filing provided that you have all the necessary documents and reports. You have to work closely with the local municipality to save your time and set up your business and get all the permits as soon as possible.
If any irregularities are found during the inspection, the Ministry for Agriculture has the authority to give you an extension of fifteen days to comply with the regulations.
What is the Best Structure for HORECA Company in Turkey?
The Turkish regulation provides various types of structures that can be used for opening a HORECA Company in Turkey. However, if you are a foreigner and want to establish such a company, you can apply for a Limited Liability Company (LLC). This is the same type of company that is recommended for a HORECA business in Turkey because it offers amazing flexibility and limited responsibility to its shareholders.
However, such businesses offer several services, the HORECA company will also be required to adhere to several laws of Turkey. Among these laws is; the Food and Tourism Law. Also, the Turkish government considers tourism as the way to boost the economy and hence, has enabled the Law for the Encouragement of Tourism, which offers various incentives for those who open a HORECA company in Turkey.
What are the Food Laws in Turkey?
If you are seeking to open a HORECA Company in Turkey, then one of the most important aspects is to follow all the regulations and laws provided by the Turkish legislation.
What follows are some of the most important laws that must be respected by all the HORECA Company owners:
● The Food Premises Regulation,
● The Food and Feed Law,
● The Tobacco and Alcohol Market Regulations,
● The Operation Permit Regulation,
● The Turkish Company Law,
All the types of HORECA Companies have to adhere to the above-mentioned laws and have to make sure that they are respecting all the regulations of the authority.
What are the Steps to Open a HORECA Company in Turkey?
First, Register the Company
The first and mandatory step to open a HORECA Company in Turkey is to select and register one of the types of structures acknowledged by the Commercial Law. The private Limited Liability Company (LLC) is one of the most suitable options if you are at the beginning stage of the business. According to Turkish laws, you will need a minimum capital of 10,000.00 Turkish Liras (₺) to set up this type of company.
Second, Obtain Approval for the Premises
Once you have registered the decided business structure, you must comply with the Food Premises Regulations. You can obtain the approval for the premises of the restaurant from the Ministry for Food, Agriculture, and Livestock. You need to ensure that the address of the restaurant is registered with the Ministry. An inspection will take place, and then the approval will be issued by the control bodies.
After the successful evaluation of your property, The Ministry will then issue a registration certificate to your HORECA Company in Turkey and will provide you with a unique ID number for your Turkish restaurant, cafe, etc.
Third, Obtain the Operation Permit
Once you have registered the premises of the Turkish restaurant, etc., you can proceed with the licensing procedure.
What follows are some of the most important aspects to consider when applying for an operation permit:
● If you have more than 50 employees you need to acquire the operation permit,
● The directorate of the region where the restaurant is located will issue the operating permit,
● This license will be issued after reviewing its main activity as per the Article of Association,
What follows are some of the other licenses that you need to obtain from the municipality for an operation permit:
● the environmental license,
● the occupancy permit,
● the energy efficiency report,
● the emission permit,
● the fire safety license,
● the hazardous waste permit.
Is it Feasible to Open HORECA Company in Turkey for Foreign Investors?
Turkey feasts on the foreign capital and hence, if you are foreign investors who want to explore various branches of the tourism industry in Turkey, then you can easily set up HORECA businesses in Turkey. However, the decision for establishing the HORECA company is entirely on the future owner who is open to various ideas and aspects like which type of food the restaurant will offer or if it will also have a separate catering division, etc.
Final Words and Conclusions on; “Open a HORECA Company in Turkey”
Turkey is a fast developing country, and HORECA can prove to be a golden goose for you if you want to establish a restaurant, cafe, bar & pub, etc., in the country to gain significant profit. If you want to see your capital rise, then open a HORECA Company in Turkey! And watch it flourish and earn you profit in the process.
Here are some helpful links for some further reading;
- Wikipedia contributors. (2021d, June 20). Hospitality industry. Wikipedia. https://en.wikipedia.org/wiki/Hospitality_industry
- Establishing a Business – Invest in Turkey. (n.d.). Presidency of the Republic of Turkey | Investment Office. Retrieved June 23, 2021, from https://www.invest.gov.tr/en/investmentguide/pages/establishing-a-business.aspx
- Government, T. ESTABLISHING COMPANY IN TURKEY. Retrieved 23 June 2021, from https://ticaret.gov.tr/data/5d3e935313b87607d8feeffc/rehber_Eng.pdf
This article was published on 15.02.021 and last edited on 24.06.2021.